In what has been described as an overwhelming show of investor confidence, the Debt Management Office (DMO) has announced that the Federal Government’s ₦300 billion Series VII Sovereign Sukuk offering attracted subscriptions worth over ₦2.2 trillion, marking a 735% oversubscription.
The announcement was made in an official statement released on Wednesday, May 29, 2025, by the DMO, highlighting the exceptional demand for the non-interest financial instrument introduced to deepen Nigeria’s capital market and support critical infrastructure development.
“The Series VII Sovereign Sukuk… recorded an unprecedented subscription level of over ₦2.205 trillion. This represents an excess of 735% subscription,” the statement read.
The DMO described the outcome as historic, pointing to a robust appetite for ethical investment instruments and growing public interest in government-backed securities.
Widening the Net of Participation
According to the agency, the pool of subscribers spanned a diverse cross-section of stakeholders, including:
- Retail investors
- Non-interest financial institutions
- Conventional banks
- Pension Fund Administrators (PFAs)
- Asset and fund managers
The strong showing, according to analysts, suggests that the Sukuk has grown beyond a niche product into a widely embraced vehicle for low-risk, socially responsible investing.
Infrastructure Financing at the Heart of the Initiative
Like previous issuances, proceeds from the Sukuk will be channeled into infrastructure projects across Nigeria’s six geo-political zones and the Federal Capital Territory. These include:
- Construction of new federal roads
- Rehabilitation of existing road networks
- Bridge development and maintenance
The DMO noted that this is in alignment with President Bola Tinubu’s Renewed Hope Agenda, which prioritises infrastructure as a critical driver of economic revitalisation.
“The raising of funds through Sukuk to finance infrastructure projects aligns with the president’s renewed hope agenda, of which infrastructure development is a key pillar,” the agency stated.
About the Sukuk Offering
The Series VII Sovereign Sukuk, which opened on May 12, is structured as a seven-year forward Ijarah (lease) instrument, offering a rental rate of 19.75% per annum. The relatively high yield, coupled with its non-interest (Shari’ah-compliant) nature, has made it particularly attractive to both Islamic and conventional investors seeking stable and ethical investment opportunities.
Since its debut in 2017, the Federal Government’s Sukuk programme has grown steadily, evolving into a cornerstone of infrastructure financing while simultaneously expanding financial inclusion and public participation in capital market instruments.
DMO: Commitment to Financial Inclusion and Development
The DMO reiterated its commitment to delivering safe, transparent, and liquid investment vehicles that also directly support Nigeria’s national development priorities. The record-breaking response to the latest Sukuk issuance, it said, affirms both the credibility of the instrument and the public’s increasing trust in its management.
“This is clear evidence of the huge investor appetite for the ethical instrument introduced by the DMO… as an innovative strategy to expand the nation’s investor base and provide opportunities for all Nigerians to participate in the capital market,” the agency said.
As the government continues to seek cost-effective and inclusive ways to fund national development, instruments like the Sovereign Sukuk are poised to play an even greater role blending faith-compliant finance with economic transformation.
